Question 1

Which of the following was the result on appeal in Merisier v.Bank of America,the case in the text in which the plaintiff sued challenging the bank's determination that based on her involvement,she was not entitled to funds obtained through alleged fraudulent use of her debit card?

Accepted Answer

A)   On the basis that it was not clearly erroneous, the court on appeal upheld the lower court's decision in favor of the bank.
B)   Although recognizing that no deference was due the trial court's decision in favor of the defending bank, the appellate court ruled in favor of the defending bank based on its own review of the facts.
C)   The appellate court ruled in favor of the defending bank on the basis that because the plaintiff's PIN number was used, she had no right to recover for alleged fraudulent transactions.
D)   The appellate court ruled in favor of the plaintiff because the decision of the lower court in favor of the defending bank was clearly erroneous.
E)   Recognizing that no deference was due the trial court's decision in favor of the defending bank, the appellate court ruled in favor of the plaintiff because the evidence preponderated in her favor.F) C) and D)
G) All of the above

Question 2

Set forth the requirements for a check to be considered properly payable.

Accepted Answer

For a check to be considered properly pa...

Question 3

A[n] ______ bank is the first bank that receives the check for payment.

Accepted Answer

A)   Payer
B)   Payee
C)   Depositary
D)   Transfer
E)   AcceptorF) A) and C)
G) None of the above

Question 4

Banks are required by the UCC to certify the check if a customer has sufficient funds in the account.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a deposit that is preauthorized and performed on a customer's account through an electronic terminal?

Accepted Answer

A)   A point-of-sale.
B)   An authorized deposit.
C)   A transferred deposit.
D)   A direct deposit.
E)   An approved deposit.F) A) and B)
G) B) and D)

Question 6

A[n] ______ is a special draft that orders the bank to pay a fixed amount of money on demand.

Accepted Answer

A)   Note
B)   Promissory note
C)   Check
D)   Acknowledgment draft
E)   Promissory draftF) A) and E)
G) A) and D)

Question 7

Which of the following is the party giving the order to pay on a draft?

Accepted Answer

A)   The drawer.
B)   The drawee.
C)   The payor.
D)   The draftor.
E)   The draftee.F) C) and D)
G) D) and E)

Question 8

The Federal Reserve System consists of ______ central banks.

Accepted Answer

A)   Six
B)   Eight
C)   Twelve
D)   Twenty
E)   ThirtyF) None of the above
G) A) and B)

Question 9

When money is transferred by an electronic terminal,telephone,or computer,this transfer is called a[n] ____.

Accepted Answer

A)   Automatic fund transfer
B)   Electronic fund transfer
C)   Computer generated transfer
D)   Wire transfer
E)   Consumer electronic transferF) B) and C)
G) A) and E)

Question 10

Bruce buys a used car from Tony for $5,000.The car is in great shape and Bruce leaves town in it.Bruce paid Tony with a cashier's check,but decided that he would rather not pay at all.Accordingly,he told the bank the check was stolen.What rights,if any,would Tony have and what liabilities and other problems,if any,would Bruce have?

Accepted Answer

Tony may sue and recover again...

Question 11

Regardless of the care used in cashing a check by the bank,a customer must report a forgery within ________ from the date the bank statement showing the forgery is available to the customer or the customer will lose the right to recover.

Accepted Answer

A)   90 Days
B)   120 Days
C)   180 Days
D)   9 Months
E)   1 YearF) B) and E)
G) A) and E)

Question 12

Which of the following is false regarding checks?

Accepted Answer

A)   Because of electronic fund transfers, checks are of little importance in the U.S. today.
B)   In 2009, Americans wrote billions of checks.
C)   Of all the negotiable instruments regulated by the UCC, checks are the most common type used.
D)   Checks are considered negotiable instruments under Article 3 of the UCC.
E)   Article 4 creates a framework controlling deposit and checking agreements between banks and customers; and when Articles 3 and 4 conflict, Article 4 is to take precedence.F) A) and E)
G) C) and E)

Question 13

As set forth in the text,what does the Financial Services Modernization Act,also known as the Gramm-Leach Bliley Act provide regarding financial institutions and customer privacy?

Accepted Answer

Financial institutions are prohibited fr...

Question 14

Checks are non-negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true regarding the bank manager's statement that the bank could not incur any liability for damages for the failure to stop payment on a check?

Accepted Answer

A)   The manager is correct.
B)   The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided.
C)   The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $500.
D)   The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $1,000.
E)   The manager is incorrect, and the bank will incur liability or damages suffered by a customer due to the failure to stop payment when a stop-payment order was properly provided, but only up to $1,500.F) A) and E)
G) D) and E)

Question 16

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ____.

Accepted Answer

A)   On-us item
B)   Combined item
C)   Condensed item
D)   Unitary item
E)   Uniform itemF) A) and C)
G) A) and E)

Question 17

A bank involved in the check collection process may only be classified as one type of bank during the entire process.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following allows a consumer to directly transfer funds from a banking account to a merchant?

Accepted Answer

A)   An electronic authorized system.
B)   A direct pay system.
C)   An authorized direct pay system.
D)   A point-of-sale system.
E)   A pay-by-electronics system.F) None of the above
G) A) and C)

Question 19

Money orders are considered checks under the UCC.

Accepted Answer

A) True 
 B)False

Question 20

Set forth the characteristics that a traveler's check must have.

Accepted Answer

A traveler's check must:
(1)Be payable o...

Exam 29: Checks and Electronic Fund Transfers

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ____.

Correct Answer
verified

Checks are non-negotiable instruments.

Correct Answer
verified

A bank involved in the check collection process may only be classified as one type of bank during the entire process.

Correct Answer
verified

A[n] ______ is a special draft that orders the bank to pay a fixed amount of money on demand.

Correct Answer
verified

Set forth the characteristics that a traveler's check must have.

Correct Answer
verified
A traveler's check must:
(1)Be payable o...
View Answer

Which of the following is a deposit that is preauthorized and performed on a customer's account through an electronic terminal?

Correct Answer
verified

When money is transferred by an electronic terminal,telephone,or computer,this transfer is called a[n] ____.

Correct Answer
verified

Which of the following was the result on appeal in Merisier v.Bank of America,the case in the text in which the plaintiff sued challenging the bank's determination that based on her involvement,she was not entitled to funds obtained through alleged fraudulent use of her debit card?

Correct Answer
verified

Banks are required by the UCC to certify the check if a customer has sufficient funds in the account.

Correct Answer
verified

Which of the following is the party giving the order to pay on a draft?

Correct Answer
verified

Set forth the requirements for a check to be considered properly payable.

Correct Answer
verified
For a check to be considered properly pa...
View Answer

Money orders are considered checks under the UCC.

Correct Answer
verified

The Federal Reserve System consists of ______ central banks.

Correct Answer
verified

A[n] ______ bank is the first bank that receives the check for payment.

Correct Answer
verified

Which of the following allows a consumer to directly transfer funds from a banking account to a merchant?

Correct Answer
verified

Which of the following is true regarding the bank manager's statement that the bank could not incur any liability for damages for the failure to stop payment on a check?

Correct Answer
verified

Regardless of the care used in cashing a check by the bank,a customer must report a forgery within ________ from the date the bank statement showing the forgery is available to the customer or the customer will lose the right to recover.

Correct Answer
verified

Correct Answer
verified
Tony may sue and recover again...
View Answer

Which of the following is false regarding checks?

Correct Answer
verified

As set forth in the text,what does the Financial Services Modernization Act,also known as the Gramm-Leach Bliley Act provide regarding financial institutions and customer privacy?

Correct Answer
verified
Financial institutions are prohibited fr...
View Answer

Exam 29: Checks and Electronic Fund Transfers

When the depositary bank is the same bank as the payor bank,the check is referred to as a[n] ____.

Correct AnswerverifiedShow Answer

Checks are non-negotiable instruments.

Correct AnswerverifiedShow Answer

A bank involved in the check collection process may only be classified as one type of bank during the entire process.

Correct AnswerverifiedShow Answer

A[n] ______ is a special draft that orders the bank to pay a fixed amount of money on demand.

Correct AnswerverifiedShow Answer

Set forth the characteristics that a traveler's check must have.

Correct AnswerverifiedA traveler's check must:(1)Be payable o...View AnswerShow Answer

Which of the following is a deposit that is preauthorized and performed on a customer's account through an electronic terminal?

Correct AnswerverifiedShow Answer

When money is transferred by an electronic terminal,telephone,or computer,this transfer is called a[n] ____.

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in Merisier v.Bank of America,the case in the text in which the plaintiff sued challenging the bank's determination that based on her involvement,she was not entitled to funds obtained through alleged fraudulent use of her debit card?

Correct AnswerverifiedShow Answer

Banks are required by the UCC to certify the check if a customer has sufficient funds in the account.

Correct AnswerverifiedShow Answer

Which of the following is the party giving the order to pay on a draft?

Correct AnswerverifiedShow Answer

Set forth the requirements for a check to be considered properly payable.

Correct AnswerverifiedFor a check to be considered properly pa...View AnswerShow Answer

Money orders are considered checks under the UCC.

Correct AnswerverifiedShow Answer

The Federal Reserve System consists of ______ central banks.

Correct AnswerverifiedShow Answer

A[n] ______ bank is the first bank that receives the check for payment.

Correct AnswerverifiedShow Answer

Which of the following allows a consumer to directly transfer funds from a banking account to a merchant?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the bank manager's statement that the bank could not incur any liability for damages for the failure to stop payment on a check?

Correct AnswerverifiedShow Answer

Regardless of the care used in cashing a check by the bank,a customer must report a forgery within ________ from the date the bank statement showing the forgery is available to the customer or the customer will lose the right to recover.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTony may sue and recover again...View AnswerShow Answer

Which of the following is false regarding checks?

Correct AnswerverifiedShow Answer

As set forth in the text,what does the Financial Services Modernization Act,also known as the Gramm-Leach Bliley Act provide regarding financial institutions and customer privacy?

Correct AnswerverifiedFinancial institutions are prohibited fr...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A traveler's check must:
(1)Be payable o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
For a check to be considered properly pa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Tony may sue and recover again...
View Answer

Correct Answer
verified

Correct Answer
verified
Financial institutions are prohibited fr...
View Answer